Career in Executive Search - underrated?
Graduating this year from a UK target/semi-target, and recruiting didn’t go great despite having LMM IB/PE internships. Best I landed was a MO role at a large balance sheet bank (think Spanish/French/Canadian) and an off-cycle at another LMM IB shop (non-convertible). Through a friend, I got introduced to executive search which is basically headhunting for senior roles. I got connected with a top-tier but small search firm focused on PE/PC/HF (keeping vague). Took the interviews, got an offer.
The role is 1-1.5 years doing market research on their buyside vertical/niche, then transitioning into a consultant (basically headhunter). They get 30% of the placed candidate’s base, and juniors start earning 30-40% of that fee. After 3-4 years, it’s 50-60%. They’ve essentially offered me a partner track early as they’ve been hyper successful and really are impressed by my sector knowledge and exp. Partners last year billed £1-1.5m, keeping 50-60% (base of £100-150k). One outlier billed £4m, but again, not standard.
Pay early is rough, like 45-60k/y all-in for the first 1-1.5 years. As a consultant, base would be £65-75k, with an expected 5-7 deals a year. Average candidate base is £350k, so a ~£100k fee per placement. I’d get ~35% of that, or £35k per deal—so ~£200k in commission in year one. With volume and % scaling up, I’d likely be clearing £350-450k+ all-in after 4-5 years. Partner comp is £750k-1m+. Also unlike IB, it’s not unusual to make partner in just 4-5 years etc which I got confirmation on by some industry professionals.
Honestly, the work doesn’t seem that hard to be good. I keep up with PE trends and have a sales background (before uni) so I’m comfortable with that side of it. Building relationships is key but the firm already has strong blue-chip connections, and I’d be aggressive in building my niche. I also just love the relationship side of business in general and wouldnt see it as a negative. I’ve done diligence via talking to people at peer firms/alumni and the numbers/progression at the firm seem legit. One downside is ppl will look down on it as essentially being just a recruiter, but I honestly don’t care considering my alternative is an MSc and keeping the application grind going (not opposed to it per say, but i’m on a bit of the older end, not like a 26 y/o double master euro student but not a 20 y/o fresh grad).
The role offers a lot of autonomy and while WLB is still no different than any other client facing role, it seems less intense than banking. Plus, there’s flexibility to move to the US or Asia due to the firm’s focus. Am I crazy for thinking this is a great path? If I’m slightly above average, it feels like I could build a solid career quickly that pays on par with banking. And honestly, I think I’d probably enjoy it. Thoughts?
Also what are the exits if I decide I hate it a year in (or later down the line)? One senior guy in the industry said a move to an investor relations role is very common at the mid/senior level and also said he has friends that moved into a Private Funds Group at a MM/EB (again, senior ish but still).
EDIT: also know someone who was from a similar IB/M&A Advisory background who after a decade or so started an M&A boutique covering only recruitment/staffing businesses - that sounds like an interesting path as well (would have the contacts & industry insight, data points re multiples/financials etc)
Based on the most helpful WSO content, a career in executive search, especially at a top-tier firm focused on PE/PC/HF, can indeed be an underrated and lucrative path. Here’s a breakdown of your situation and the potential pros and cons:
Why This Path Makes Sense:
Compensation Potential:
While the early pay is modest (£45-60k all-in), the earning trajectory is highly attractive. By year 4-5, clearing £350-450k+ all-in is realistic, with partner comp reaching £750k-1m+. This rivals or even surpasses many IB/PE roles, especially when factoring in the faster partner track (4-5 years vs. 10+ in IB).
Work-Life Balance (WLB):
While still client-facing and demanding, executive search generally offers better WLB compared to IB or PE. The autonomy and flexibility to build your niche, coupled with the ability to move geographically (US/Asia), are significant advantages.
Skill Alignment:
Your sales background, sector knowledge, and interest in relationship-building align well with the role. The firm’s existing blue-chip connections and your aggressive approach to building a niche could set you up for success.
Career Progression:
The partner track in 4-5 years is a standout feature. Few industries offer such rapid progression with comparable compensation. Additionally, the role allows you to develop a strong network in the buyside space, which could open doors later.
Perception vs. Reality:
While some may look down on executive search as "just recruiting," the numbers and progression you’ve outlined speak for themselves. If you enjoy the work and the pay is competitive, external perceptions shouldn’t matter.
Potential Downsides:
Early Pay:
The first 1-1.5 years are financially lean compared to IB/PE analyst roles. However, the upside in years 3-5 compensates for this.
Exit Opportunities:
While executive search isn’t as structured as IB for exits, there are still viable options:
Reputation Risk:
If you decide to leave early (e.g., within a year), it might be harder to explain the move compared to a more traditional IB/PE path. However, this risk diminishes as you gain experience and build a track record.
Final Thoughts:
You’re not crazy for thinking this is a great path. The combination of rapid progression, high earning potential, and alignment with your skills/interests makes it a compelling option. If you’re confident in your ability to excel in the role and enjoy the work, this could be a faster and more enjoyable route to financial success than grinding through MSc programs or restarting the IB/PE application process.
The key is to commit fully for at least 2-3 years to build credibility and maximize the opportunity. If you decide to pivot later, your buyside network and experience will still hold value.
Sources: Is BCG a viable path to Private Equity?, The Efficient Career Hypothesis: Almost All Jobs Are Priced In, https://www.wallstreetoasis.com/forum/equity-research/career-ladder-equity-research-vs-investment-banking-a-definitive-guide-part-3?customgpt=1, Q&A: Former MBB Consultant, https://www.wallstreetoasis.com/forum/investment-banking/corporate-banking-vs-management-consulting?customgpt=1
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I think search is maybe the best comp / lifestyle setup possible. You can get paid like a biglaw partner or banking MD with a fraction of the stress.
The IR comment is a bit of a head-scratcher for me. I imagine it's fine at the junior level because you're doing market maps, building decks, and are presumably presentable enough... but the skills needed for both jobs are going to get pretty specific above that. I'd be surprised if there were many laterals outside of the Talent world once you get >5 YOE or so.
Not sure what reference point he had re the IR comment, as I don’t have any colour as to senior level movement from search to IR - have seen some LinkedIn profiles that moved at the junior level but certainly sounds like the skillset gap becomes much larger the more senior your get, to your point.
In terms of the comp side, do you have any colour as to if those numbers sound right (for either/both US or UK)? Just don’t know if that sounds realistic or not and any insight as to your experience of what WLB looks like would be interesting
I know an exec search guy who placed me and others.... he makes more than the average IB dude. Especially because he finds very special IB staff, people who have a unique skill set or languages.
What level/age is your friend? When you say he makes more on average, do you mean at the equivalent seniority level (ie. making £500k as a VP level 5-6YOE in executive search vs. making £300-350k as a VP in IB at same YOE)? Curious to hear that delta at each age
He is about 29-30 years of age and makes roughly £300K - I don't have any exact numbers and salary progression.
This allows him to live in a detached single-family home (in a good, clean home county), has two cars (1 new Audi), has a cat, long-term gf he is about to marry, and is renting out a second property/flat.
Due to the nature of the business he is also able to WFH a lot more than others, with only few days at the office in London.
If you know how to find IB staff and weed out the weirdos... this can be a lucrative business.
the things I do know:
He only worked at very small search shops
Born/raised in England
Very good people skills/presentable
He is more "driven" than other people you meet...
I believe he started at... around 21 years? so nine years or so in the business
I have a friend who owns a recruiting firm, and you are correct on the comp potential. Howeever, I think you are vastly underestimating how hard it is to get to that level. You either have to earn the trust of firms with recurring mandates or carve out a very specific niche for which you are known in the industry. The sales cycle can be incredibly long. I’ve hired many recruiters, and sometimes they work for a year on a mandate before getting paid.
Makes sense. I’d assume the main struggle is finding those clients and convincing them to retain you, and then there’s the actual search side that like you mentioned is not guaranteed to be a fast/smooth process.
I’d ask tho as someone who is the position to hire an exec searcher, is it true that there are only really a few recruiters who are qualified/have enough experience to really be trusted to handle your business? Meaning, once you’re in that group of being a trusted searcher, is it true that you ‘have it made’ in regard to really only competing with a small selection of other ‘qualified’ searchers within that niche? I say that as the firm wants me to take on a quite specific niche that’s growing where I just don’t see how there could be a lot of competition in regard to high quality searchers within this specific vertical.
Curious to hear what u think though.
I use multiple recruiters. Developing a niche is key. Doesn’t event have to be C-level. I know a guy who does well with a high volume of mid-level searches with a particular specialty.
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